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Brazil’s Senate Ratifies Mercosur–EU Trade Deal as Government Issues Safeguard Rules

Authorities aim to notify Brussels this month to allow provisional application as early as May.

Overview

  • Senators approved the agreement in a unanimous, symbolic vote after the foreign relations committee canceled its meeting and sent the text directly to the floor under urgency.
  • On the same day, Decree No. 12.866 was published to regulate bilateral safeguards, assigning Decom/Secex as investigator and Camex as the decision maker, using 36 months of data and tools such as suspending tariff phase‑outs, quotas and quantitative limits.
  • The treaty now awaits congressional promulgation followed by a presidential decree to complete internalization before Brazil formally notifies the European Commission, a step the government plans to take in March.
  • EU institutions have signaled readiness for provisional application while a Court of Justice review proceeds, and the EU has set objective triggers for sensitive farm goods that can prompt investigations and suspend preferences.
  • The pact covers a market of about 718–720 million people and over US$22 trillion in GDP, phases out or cuts tariffs on more than 90% of trade over long timelines (up to 18–30 years), and carries MDIC estimates of modest gains such as a 0.34% GDP lift by 2044.